Published by – Goutam Kumar Jena
on behalf of GNEXT MS OFFICE
Category - Finance & economics & Subcategory - Stock market
Summary - story to understand how stock market & similar investment works
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Rating for Article:– Welcome to Wall Street finance world ( UID: 171025110323 )
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Details ( Page:- Monkey catcher )
A short story to understand stock market / share trading & Demand supply.
The Villagers of a village were upset due to huge monkey population in their village but they don’t have any idea to do anything.
A monkey catcher came to a village. He announced $10 cash reward for each monkey sold to him.
The villagers were already upset & also wanted to take benefit of the situation. As there were many monkeys around, they started catching them.
The man bought thousands at $10, but, as the supply started to diminish, the villagers find difficulty to catch monkey & stopped their efforts. The man further offered monkey price at $50 cash. This idea worked & the villagers started catching monkeys again.
But the supply again diminished even further and the villagers find much difficulty to catch monkey. The offer rate increased to $100 and the supply of monkeys became rare. Even catching a single monkey is very rare.
The man now offered new rate & said , that he would buy monkeys at $500. But, he said that, he had to go outside for some urgent work. So, people have to wait 2-3 days. His assistant will be there in village and take care of monkeys.
The monkey catcher went out of village. But villagers are not able to catch a single monkey.
Now, The assistant shared a benevolent idea to energize villagers. He show the caged monkeys to villagers that the man has collected. Assistant said, that I will sell them to you at $150 and when he returns from the city, you can sell them back to him for $500.”
The villagers see a lifetime opportunity within 2days. So they gathered & invest their savings and bought all the monkeys.
Villagers have monkeys now & they are waiting for the lucky day to sale. Days past but, neither monkey catcher & nor assistant come back.
This is how stock market works.
Now let's learn something extra from above story.
Don’t believe on monkey catcher or, his assistant (means others & unknown) to make money. Don’t believe in short money making opportunity from others. However many more points can be learnt from above, it’s up to reader.
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